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The minimum price below which the auctioneer will not sell the goods.
- a)Stock price
- b)Reserve price
- c)Upset Price
- d)Either (b) or (c)
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The minimum price below which the auctioneer will not sell the goods.a...
Reserve Price vs Upset Price:
The correct answer to the question is option D, which states that the minimum price below which the auctioneer will not sell the goods is either the reserve price or the upset price. Let's understand the difference between these two terms:
Reserve Price:
- The reserve price is the minimum price set by the seller before the auction starts.
- The auctioneer cannot sell the item below this price.
- If the bidding does not reach the reserve price, the item will not be sold.
- It is a way for the seller to ensure that they do not sell the item for less than they are willing to accept.
Upset Price:
- The upset price is the minimum price at which the auctioneer will start the bidding.
- It is also known as the opening bid or starting bid.
- If no bids are received at or above the upset price, the auctioneer may choose not to sell the item.
- The upset price helps to set the tone for the auction and encourage potential buyers to start bidding.
Conclusion:
In summary, the reserve price and upset price are both important factors in an auction setting. The reserve price protects the seller's interests by setting a minimum price for the sale, while the upset price initiates the bidding process and determines the starting point for the auction. Both prices play a crucial role in determining the final selling price of the goods at an auction.
The correct answer to the question is option D, which states that the minimum price below which the auctioneer will not sell the goods is either the reserve price or the upset price. Let's understand the difference between these two terms:
Reserve Price:
- The reserve price is the minimum price set by the seller before the auction starts.
- The auctioneer cannot sell the item below this price.
- If the bidding does not reach the reserve price, the item will not be sold.
- It is a way for the seller to ensure that they do not sell the item for less than they are willing to accept.
Upset Price:
- The upset price is the minimum price at which the auctioneer will start the bidding.
- It is also known as the opening bid or starting bid.
- If no bids are received at or above the upset price, the auctioneer may choose not to sell the item.
- The upset price helps to set the tone for the auction and encourage potential buyers to start bidding.
Conclusion:
In summary, the reserve price and upset price are both important factors in an auction setting. The reserve price protects the seller's interests by setting a minimum price for the sale, while the upset price initiates the bidding process and determines the starting point for the auction. Both prices play a crucial role in determining the final selling price of the goods at an auction.
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The minimum price below which the auctioneer will not sell the goods.a)Stock priceb)Reserve pricec)Upset Priced)Either (b) or (c)Correct answer is option 'D'. Can you explain this answer?
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